Carrying Costs Budgeted if Choose Option to Buy
Michael Woodard expressed his concern that we look at the big picture when evaluating these properties relative to each other. According to Michael, we would have to budget for at least enough money to pay a full year or year and a half of the carrying costs to effectively retain an option to buy on whichever property we chose (and they accept).
To figure the cost to the seller to hold the property during the option period you are talking as follows:
Taxes
+Insurance
+Heat & Utilities
(less rental income)
Total Cost to hold for 1 year
Estimated Carrying Costs for Various Options
- Green Mountain Studios: $35,000/year
- Tuckaway Timber: $12,000 - $15,000/year
- Upper Valley Land Trust: minimal – property is nontaxable.
Upper Valley Land Trust
Freda Swan spoke to Jeannie McIntyre, Director of the Upper Valley Land Trust this morning. She will speak with the executive committee in a couple of days. The full board will not meet until January.
Why do we need town offices?
Carole Bont relayed the Budget Committee’s request that we submit a report to them of the reasons why the town needs new town offices. The Town Offices Building Committee approved her submitting a copy of the summary to the Budget Committee. If they want back up information we can give them the full report and the air quality report.
Need for and Cost of Appraisals
Michael Woodard expressed the need to have an independent appraisal of the 1-2 parcels we may be considering. It would be nice to go to town meeting and say that we paid below market price. We are competing for property in the open market, but not really. Michael Woodard would like the issue of the appraisal to be put on the agenda for next week when we meet. To fully evaluate the properties we would need an appraisal of each. The cost of a commercial appraisal which is what we would need if we considered either Green Mountain Studios or Tuckaway Timber, would depend on whether we obtained a commercial appraisal or a residential appraisal. The Commercial appraisal is much more comprehensive and looks at the income in addition to replacement value to come up with a fair market value. The cost of a commercial appraisal runs between $2,800 and $3,800. The cost of a residential appraisal would be between $400 and $500. He asked Carole Bont to ask the Selectmen which kind of
appraisal they would need – commercial or residential - based on their comfort level. We would then need to budget appropriately.
Rough Estimate of Cost of Options
Michael Woodard equalized the assessment of the Green Mountain Studios and got a value of $958,000. Green Mountain Studios is insured for somewhere in the neighborhood of $1.8 million.
He did the same for Tuckaway Timber and came up with a fair market value of $308,000. Presently, Mather is asking $600,000 for the Tuckaway Timber property and Michael Woodard is not sure that Mather would be willing to come down in price. Even if he came down to $500,000, the price still would be too high in relation to the assessed value equalized.
Modular versus stick built
Carole Bont suggested that we look into the cost per square foot for modular office space. She will find out how much modular construction costs versus stick built. She is to get estimates from Bill Moore (an ex-detective from Hanover Police Department), LaValley’s. We are looking for about 4000 square feet squarish in shape, capish in style with a police office included. The police office would include a three bay garage – two for the cruisers and a secured area for evidence storage. The roof should have at least an 8-10-12 pitch.
Carole Bont will call a few contractors about the cost of modular offices versus stick built.
Time Line issues
In trying to figure out how long it would take for Michael Woodard suggested the amount could be passed subject to Budget Committee approval (ie., purchase an option to buy).
Site Visits
Carole Bont will make an appointment to see Green Mountain Studios and Tuckaway Timber for next Monday.
The meeting was adjourned at (1:00 PM – just a guess).
Dear Patty,
I got on line and ordered a bunch of information on modular. Then spoke to Michael Woodard who said I need to look into prefabricated buildings. I spoke to LaValleys. They need a plan in order to give us an estimate.
The guy at LaValleys said to estimate $100/sq ft for residential. Commercial is significantly higher – could even be twice that - $200/square foot. The problem is that he does not know how the requirements for municipal office building would differ from Commerical. For example, in commercial and municipal the handicapped access would be required, handicapped bathroom facilities would be required. However, a sprinkler system adds between $2 and $3 per foot. In a municipal building would a sprinkler system be required or not? Other features? An alarm system? Temperature controlled storage? The architects should check all this before getting a plan approved.
New Town Offices – check with Town Clerk in Gantham. They are in the process of building it right now. I called. They are. She suggested I call their Clerk of the Works and one of the Selectmen.
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